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A New Manager Selection Process for Increased Diversity

The current asset-manager evaluation process only exacerbates existing inequities in financial services.

Investors increasingly tell asset allocators that they want manager diversity along with their financial returns, but traditional due-diligence and risk-assessment frameworks in the asset-management industry have led to a system in which white, male asset managers control 98.7% of the investment industry's $69 trillion in assets under management.

There are many talented Black asset managers, but assets aren't being allocated to us at scale. What's holding back our success? The answer lies in an outdated due-diligence process that maintains the status quo and keeps investments where they have always been, and that's not in the hands of Black folks.

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